Energy News Digest/ Press Release to 16th Feb. 2022. OPEC daily basket price stood at $94.73 a barrel, Tue, 15th Feb. 2022
According to the EIA, crude oil production in the seven U.S. shale basins is set to increase to 8.707 million barrels per day in March. An increase of 1.3% from February’s 8.598 million bpd.
Versalis, Eni’s chemical company, announces today that it has begun the production of bioethanol from lignocellulosic biomass at Crescentino (Vercelli). The plant, which was acquired in 2018, has been overhauled thanks to major investments and has started the production of advanced bioethanol, in compliance with the European legislation for the development of renewable energy RED II, as it is derived from raw materials that do not interfere with the food chain. The bioethanol, produced using Proesa® technology, one of the world’s most innovative industrial-scale biomass chemistry technologies, is ISCC-EU* certified and will be used to formulate gasoline with a renewable component.
The plant is capable of processing 200,000 tonnes of biomass per year, with a maximum production capacity of approximately 25,000 tonnes of bioethanol per year. Following an initial test production run in recent weeks, the plant is now working at a progressive speed in order to fine-tune processes. Since July 2020, Crescentino has also been producing Invix® hand and surface disinfectant, a “medical device” made using bio-based ethanol as active ingredient. The Versalis plant at Crescentino is an example of sustainable initiative and circularity: its energy supply is self-sustaining due to the production of renewable electricity and steam from the thermoelectric power plant, which is fed with short supply chain biomass and the lignin co-produced by the process. A complex water treatment plant also enables the production of biogas, which in turn is used to produce steam. The plant is also able to recycle the water used, thus drastically reducing consumption.. Read More
| Oil and Gas Prices | Units | Price $ | change |
| Crude Oil (WTI) | USD/bbl | $93.38 | Up |
| Crude Oil (Brent) | USD/bbl | $94.67 | Up |
| Bonny Light | USD/bbl | $93.77 | Down |
| Natural Gas | USD/MMBtu | $4.55 | Up |
| OPEC basket 15/02/22 | USD/bbl | $94.73 | Down |
OPEC Secretary General, HE Mohammad Sanusi Barkindo, participated in the Egypt Petroleum Show (EGYPS) 2022, which is being held in Cairo between 14 and 16 February 2022. The Secretary General took part in a panel session hosted by as part of the EGYPS Strategic Conference after attending the event’s opening ceremony. He also had an engaging discussions with students during the Young Professionals Programme. Both events took place today, 14 February 2022.The panel session, ‘Modernizing the global energy dialogue for industry transformation’, featured several other industry leaders, including Dr Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers’ Organization (APPO); Eng. Mohamed Hamel, Secretary General of the Gas Exporting Countries Forum (GECF), who participated via a recorded message; Joseph McMonigle, Secretary General of the International Energy Forum (IEF), among others. It was moderated by John Defterios. Read More
OPEC Secretary General, HE Mohammad Sanusi Barkindo, was presented with a special award in recognition and honouring of his achievements as Secretary General of the Organization. Barkindo received the award in a high-level gala dinner hosted by Egypt Petroleum Show (EGYPS) 2022, which is being held in Cairo between 14 and 16 February 2022. In his acceptance speech, the Secretary General praised the exemplary leadership and vision of HE Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, and HE Tarek El-Molla, Minister of Petroleum and Mineral Resources, and congratulated them for successfully hosting the fifth edition of the event. Read More
Tullow Oil announced that the Final Investment Decision for the Tilenga Project in Uganda and the East African Crude Oil Pipeline (EACOP) as reported by Total Energies Ltd (“Total”) on 1 February 2022 has triggered a contingent consideration of $75 million in relation to Tullow’s sale of its assets in Uganda to Total in 2020. Tullow will continue to have exposure to the Tilenga Project through additional cash consideration which may be received in the form of contingent payments depending on the average annual Brent price once production commences. Today’s payment underpins Tullow’s free cash flow in 2022, supported by a strong start to the year with a realised average oil price (post hedging) of c.$86 per barrel in January. Read More
On behalf of the partnerships Equinor is exercising options worth NOK 8 billion with Archer, KCA Deutag and Odfjell Drilling. The contracts include drilling, completion, intervention services, plugging, maintenance and modifications on 19 of Equinor’s permanent installations, maintaining strong ripple effects.The four-year agreements were signed in 2018. Exercised for two years from the end of 2022, the options cover the same scope of work as previously regulated by contract. The contracts provide jobs for around 2000 people each year. Read More–>
The Gazprom Board of Directors took note of the information about the development and implementation of projects designed to reduce the negative impacts brought about by energy transition processes. It was highlighted that Gazprom is constantly monitoring energy transition processes and the associated risks and opportunities in order to take them into consideration in the long-term planning of the Company’s activities. The current stage of the energy transition is characterized by the growing use of renewable energy sources (RES) and has a number of negative effects on both consumers and producers of energy. The main negative effect for consumers is that energy systems become less predictable and less stable as the share of RES in their structure grows bigger. Generation of power from RES depends on weather and lacks stability. For instance, this factor had a significant influence on the European energy market in 2021. Read More
The Gazprom Board of Directors approved the Company’s ongoing efforts to improve the energy efficiency of production processes and reduce greenhouse gas emissions. It was noted that the work is performed in line with the Russian Energy Strategy up to 2035 and the Energy Efficiency and Energy Saving Policy of Gazprom. In 2018–2021, Gazprom saved 15.68 million tons of fuel equivalent on fuel and energy resources, including 13.67 billion cubic meters of natural gas, 1.37 billion kWh of electricity, and 0.93 million Gcal of heat. The value of the saved fuel and energy resources totaled RUB 54.9 billion. Read More
| Region | Period | Rig Count | Change from Prior Count |
| U.S.A | 11th February 2022 | 635 | +22 |
| Canada | 11th February 2022 | 219 | +1 |
| International | January 2022 | 841 | +7 |
As the global population edges towards the 10 billion mark by 2050 and world GDP more than doubles, natural gas will continue to play a crucial role in alleviating energy poverty, fuelling economic growth, expanding prosperity, and contributing to the protection of the environment, according to HE Eng. Mohamed Hamel, the Secretary General of the Gas Exporting Countries Forum (GECF).
Taking part in the 5th Egypt Petroleum Show (EGYPS) 2022, HE Hamel delivered his pre-recorded remarks in a panel session, “Modernising the global energy dialogue for industry transformation’, and cautioned that a one-size-fits-all model will not work in the energy transition.
“Natural gas is the fuel for sustainable development in many developing countries. We shall not forget that today, more than three billion people still lack access to clean fuels for cooking,” he said.
“Energy transition in Europe cannot be the same as in India, or in Africa.”
The GECF official was joined by several peers, including Dr Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers’ Organisation (APPO), HE Joseph McMonigle, Secretary General of the International Energy Forum (IEF), and HE Mohammad Sanusi Barkindo, Secretary General of OPEC. The discussion was moderated by John Defterios, formerly of CNN.
HE Hamel expressed confidence that COP27 in Egypt – a developing country, and in Africa – will mobilise financial resources, transfer of technology, and capacity building to help developing countries mitigate and adapt to climate change. Read More
Glencore Records Strong financial performance
$21.3 billion Adjusted EBITDA, up 84% (y/y), underpinned by robust Marketing and Industrial results
Net income, pre-significant items: $9.1 billion, up 267%
Net income attributable to equity holders was $5.0 billion (loss of $1.9 billion in 2020). Significant items principally comprise the required accounting recycling to the income statement of Mopani’s non-controlling interests upon its disposal ($1.0 billion), impairment charges of $1.8 billion, mainly attributable to our Koniambo nickel operation and a $1.5 billion provision raised with respect to the regulatory investigations noted above.
Net cash purchase and sale of PP&E: $3.8 billion, down 3%
Shareholder returns of $4.0 billion announced, comprising a proposed $0.26/share ($3.4 billion) base distribution in respect of 2021 cash flows, alongside a new $550 million share buyback program
Record industrial asset adjusted EBITDA contribution
Industrial Assets Adjusted EBITDA $17.1 billion, up 118%, underpinned by significantly higher commodity prices with many reaching record or multi-year highs, amid widespread supply/demand deficits
Metals $12.0 billion (+65%), Energy $5.6 billion (+439%); balance is Corporate and other
Unit cost results: Cu 67¢/lb (-27¢/lb y/y); Zn -4¢/lb (+3¢/lb y/y); Ni 454¢/lb (+78¢/lb y/y); coal $52.90/t ($50.6/t margin)
Higher and broad-based marketing results
Marketing revenues $182 billion, up 46% y/y
Marketing Adjusted EBIT $3.7 billion, up 11% y/y
Energy Adjusted EBIT: $1.4 billion (-21%), as a strong 2021 coal result limited the net overall reduction, given oil’s lower contribution relative to the prior year, wherein it capitalised on the exceptional market conditions
Metals Adjusted EBIT: $2.5 billion (+50%), as all key markets exhibited strong demand, supply constraints and inventory drawdowns
Viterra agricultural business contributed $473 million (2020: $211 million) share of net earnings Read More
Glencore plc announced that its Board is recommending an aggregate distribution of US$0.26 per share in respect of the financial year ended 31 December 2021. Distributions will be declared and paid in U.S. dollars, although shareholders on the Jersey register will be able to elect to receive their distribution payments in Pounds Sterling, Euros or Swiss Francs. Shareholders who formerly held shares through the Computershare Hong Kong nominee will receive distribution payments in US dollars unless they make an election to receive payments in Swiss francs, Sterling or Euros, or subscribe to the global payment service to elect to receive payments in the currency of their choosing (including Hong Kong Dollars), by the prescribed date. Elections will remain in place until revoked by the shareholder. Shareholders on the Johannesburg register will receive their distribution payments in South African Rand. Read More
Energy is now the best performing sector in Europe so far this year, with a 12-percent gain for the sub-index early on Monday, after bank stocks slumped on the Russia-Ukraine crisis, dragging down the bank index to a year-to-date gain of 11 percent.
As tensions over Ukraine mounted in the past few days, banking stocks in Europe crashed early on Monday amid fears that potential sanctions against Russia over a Ukraine invasion would hit the European banking sector.
At the same time, energy stocks have been performing well in recent weeks, thanks to rallying oil prices and majors reporting multi-year-high profits and cash flows for the fourth quarter of 2021 and for full-year 2021.
So, on Monday, the STOXX Europe 600 Banks index fell by 4.6 percent, according to Bloomberg’s estimates. Year to date, the index has now gained 11 percent, as of early on Monday EST.
The STOXX Europe 600 Energy index, for its part, has gained 12.3 percent year to date.
As international crude oil prices rallies to $90 and above, shares in the major European oil firms have also been on a tear, offsetting the share price slumps from the pandemic.
Russia said Wednesday it was returning more troops and weapons to bases, but NATO declared it saw no sign of a drawdown as fears that Moscow could invade Ukraine soon persisted. Russia has massed about 150,000 troops east, north and south of Ukraine, sparking Western concerns it was planning an attack. Moscow denies it has any such plans and this week said it was pulling back some forces and weapons, though it gave few details. Those claims have been met with skepticism from the U.S. and its allies — even as they seemed to lower the temperature following weeks of escalating East-West tensions. Read More
Emerging Fuels Technology (EFT), a technology company focused on methods for producing synthetic fuels from feedstocks such as natural gas, flared gas, biogas, biomass, municipal solid waste, CO2 introduced its Maxx Jet™ and Maxx Diesel™ proprietary methods, which employ a unique catalyst system made for EFT by Haldor Topsoe. The process is ideally configured to pair with EFT’s Fischer Tropsch technology to provide a scalable, sustainable path for converting Fischer Tropsch syncrude into very high yields of high-quality jet fuel and diesel fuel products. Maxx Jet™ technology was recently used to make jet fuel from CO2 for the Air Force in partnership with Twelve. The need for sustainable fuels – especially jet fuel – is immediate and apparent as global aviation produces 1.2 billion tons of CO2 emissions every year. Read More
Understanding the sustainability of electric cars
According to the Capgemini Research Institute report, the shift to electric vehicles would cut the overall lifetime Greenhouse Gas (GHG) footprint by about 37% for passenger vehicles, while reducing the operating footprint by 75%.The true impact that electric vehicles can have on the environment also highly depends on the power grid of that country. The figures used above are based on the grid in the 27 EU countries and the UK when powered by renewable sources. Depending on the mix of electricity supply, the reduction in emissions from an electric vehicle will vary. For countries with carbon-intensive energy generation, there would be smaller reduction. Nevertheless, electric cars have great potential. According to the International Energy Agency (IEA), sales of electric vehicles topped 2.1 million globally in 2019. It surpassed the previous year, which was already a record year for sales, by 40%. Read More
As more households install rooftop solar and more renewable energy farms come online, a new problem is emerging. It’s called “curtailment”, which is where an electricity generating system stops exporting to the grid or even temporarily shuts down, effectively wasting energy that could have been used. This week, Western Australia followed South Australia in granting authorities the power to turn off household solar systems when the electricity network is under severe stress. But curtailment isn’t only an issue in WA and SA. Read More
Snow Lake Resources Ltd., d/b/a Snow Lake Lithium Ltd. reports that the first batch of data received from its drone magnetic survey first announced ( November 29, 2021 – Snow Lake Lithium Receives Government Grant for $62,000 CAD ), identified several highly prospective targets in the Company’s Sherritt Gordon (SG) pegmatite dykes.Initial images from the EarthEx Drone Magnetic survey on the Snow Lake Lithium SG – Grass River (GR) Target area show noticeable correlation between magnetic lows in the data and the known pegmatite dykes that were sampled during last fall’s prospecting campaign (December 6th 2021 – Snow Lake Resources Ltd. Samples Up To 6.97 WT% Li2O from its Manitoba Project ). The drone system’s unique ability to fly low to the canopy and maintain centimeter precision RTK (real-time kinematic positioning) navigation results in exceptional levels of detail in the data, revealing features not before seen Read More
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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